Ashmore Group raises dividend despite profit drop

Specialist asset manager Ashmore Group increased its dividend following a 'satisfactory' financial performance for the second half of 2012.

Specialist asset manager Ashmore Group increased its dividend following a 'satisfactory' financial performance for the second half of 2012.

The group raised its dividend 2.3% to 4.35p per share as assets under management increased by 11% to $71.0bn as a result of net inflows and positive investment performance. Continued net inflows climbed 60% to 1.6%.

Advertisement - Article continues below

Basic earnings per share rose from 13.83p in 2011 to 13.92p.

Chief Executive Officer, Mark Coombs, said the company took advantage of emerging markets amid political events, central bank intervention and continued anaemic growth of developed countries.

"Ashmore's experienced investment team has a 20 year track record of investing successfully in these markets, and with a broad and diverse range of themes available to clients the Group is well positioned to benefit from rising demand for the attractive risk-adjusted returns available from emerging market asses," he commented

Despite the raised dividend, the company reported a 7.3% drop in profit before tax of £120.2m and a 10% decrease in earnings before interest, taxes, depreciation, and amortisation (EBITDA) of £114.1m. The EBITDA margin remained unchanged at 70%.

Coombs said heightened volatility resulted in strong investment performance.

"At December 31st 2012, 89% of AuM [assets under management] had outperformed relevant benchmarks over one year and 88% over three years," he said.

Shares fell 1.07% to 360.40p at 09:38 Thursday.




Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Investment strategy

How John Maynard Keynes learned the folly of market timing

In an extract from his book The Sceptical Investor, John Stepek explains how the great economist John Maynard Keynes came a cropper when he first star…
25 May 2020
Emerging markets

A new lease of life for the Brics

Emerging markets are having a surprisingly good crisis. Their long-predicted rise will now continue.
24 May 2020

Battling volatility: The benefits of an active manager

SPONSORED CONTENT – Alastair Wilson, managing director of Close Brothers, on the advantages of active investing in times of crisis.
21 May 2020